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WASHINGTON, D.C.  The Department of Justice took steps today to end
discriminatory shipping rates that put small importers of wine and liquor
at a competitive disadvantage.

The Department's Antitrust Division filed a lawsuit to challenge an
agreement between the Lykes Bros. Steamship Co. Inc., a major carrier of
wine and spirits headquartered in Tampa, Florida, and the Universal
Shippers Association, the largest association of importers of wine and
spirits, under which Lykes was required to charge other importers at least
five percent more in shipping costs than it charged Universal.

The Department said the additional cost made it harder for smaller
domestic competitors to transport products from Europe to the United States
at lower prices.

At the same time, the Department filed a proposed consent decree, that
if approved by the court, would settle the suit. The consent decree would
be in effect for up to 10 years.

In the suit filed in U.S. District Court in Washington, D.C., the
Department said the contract provision, called an "automatic rate
differential," gave Universal an unreasonable advantage over its
competitors. Universal handles about half of the wine and spirits carried
from Europe to the United States.

Anne K. Bingaman, Assistant Attorney General in charge of the
Department of Justice's Antitrust Division, said, "The automatic rate
differential clause in this case acted as a kind of tax on Universal's
competitors, making it harder for them to bring wine and spirits into the
United States at lower prices. The settlement, which would prohibit Lykes
from agreeing to similar clauses in the future, levels the playing field for
competitors of Universal."

The consent decree prohibits Lykes from maintaining, adopting,
agreeing to, or enforcing an automatic rate differential clause in any
contract. It also nullifies any automatic rate differential clause in any
existing contract. Upon entry of the consent decree, Lykes must notify in
writing each shipper with whom it has an automatic rate differential clause
letting them know that the consent decree prohibits such a clause. Lykes
also will be required to maintain an antitrust compliance program.

U.S. wine and spirits importers spend more than $40 million on ocean
transportation annually between Europe and the United States. Importers
often join shippers' associations, including Universal Shippers
Association, that negotiate ocean transportation agreements for them.
Universal's members include beverage dealers as well as large distillers
that ship their own products.

As required by the Tunney Act, the proposed consent decree, along
with the Department's competitive impact statement, will be published in
the Federal Register. Any person may submit written comments concerning
the proposed consent decree during a 60-day comment period to Roger W.
Fones, Chief, Transportation, Energy and Agriculture Section, Room 9104,
U.S. Department of Justice, 555 Fourth Street, N.W., Washington, D.C.
20001. Telephone: 202/307-6351.